Stock prices tumble as investors liquidate shares
KATHMANDU, APR 21:
As investors started liquidating shares, stock prices plunged and transaction volume surged in the first week of the new year — April 14 to 18.
The Nepse index dropped 4.35 points in the week’s trading as investors sold shares belonging to
financial institutions pulling their share prices down. The transaction volume this week went
up by 21.23 per cent following the heightened selling of shares.
Nepse’s trading floor observed trading of 1.17 million unit shares worth Rs 366.6 million of 103 companies in 4091 transactions. The transaction volume last week stood at Rs 302.5 million.
The stock market could not register any gain in all four trading days. The market that had opened at 523.38 points on Monday afternoon reached 521.39 points by the end of the day. The next day, the index slipped to 520.65 points. As share prices kept tumbling, the descent continued till Thursday and the index dropped to 519.03 points by the end of the week.
As the week passes, share prices can be expected to rise following the publication of third quarter financials, which is expected to be good.
Share trading of blue chip stocks belonging to class ‘A’ companies comprised of 60.92 per cent of total transactions amounting to Rs 223 million, this week. The sensitive index, which measures the performance of blue chip stocks, declined by 1.17 points.
Likewise, the float index that shows the performance of actual shares traded, also declined by 0.33 points to 36.56 points.
This week, Nepal Life Insurance Company topped the charts in terms of transaction volume with trading of shares worth Rs 68.7 million. Kumari Bank topped in terms of number of shares traded, with trading of 225,000 units. Civil Bank was the forerunner in number of transactions with 543 transactions.
This week, shares of financial intermediaries and hydropower companies took a beating while manufacturing, others and hotels were able to register gains.
Hotel was the biggest earner of the week and gained 11.15 points, as Soaltee Hotel earned Rs 10 per unit share. Likewise, others was the other earner of the week that gained 3.52 points as Nepal Telecom’s price increased by Rs three. Commercial banks was the biggest loser of the week as share prices of major banks dipped by more than Rs 10, pulling the subgroup down by 8.42 points. Likewise, hydropower companies also went down by 2.12 points.
Insurance companies, that was enjoying a good run last week, tumbled by 2.16 points. Finance companies and development banks lost 0.53 points and 0.79 points, respectively.
This week, the top four companies in terms of turnover were Nepal Life Insurance Company (Rs 68.77 million), Everest Bank (Rs 26.25 million), Kumari Bank (Rs 20.04 million) and Civil Bank (Rs 25.02 million). This week more than 5.1 million units of bonus shares were listed at the stock exchange.
Source: THT
